Downfall of DOL Fiduciary Rule Bolsters the Annuities Market

Industry analysts project annuity products to rebound from a sales slump in 2017 and the early months of this year, according to the LIMRA Secure Retirement Institute and reported by InsuranceNewsNet. The main driving force behind the comeback is the demise of the Department of Labor’s fiduciary rule, which a federal court struck down in March as a result of lawsuits filed by NAIFA, the American Council of Life Insurers, and other groups.
The looming DOL rule had injected a large measure of uncertainty into the annuities market and the sales process, leading many companies and advisors to shy away from these products. With the DOL rule vacated, the situation has become much clearer.
Other factors that could drive increased annuity sales, according to InsuranceNewsNet, include rising interest rates, market volatility, and investors questioning whether stock market gains will continue.
Annuities can form important components of retirement plans for many people. They can help assure that retirees do not outlive their savings and are the only financial products that can guarantee a fixed income for life.
  • Posted June 13, 2018 IN

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